China's central government has allocated 2.22 billion yuan (358.3 million U.S. dollars) to the health service sector to improve well-being and shore up growth, the Ministry of Finance announced Wednesday.

The money will be used to improve medical services, provide better care for the elderly, and support related sectors, including pharmaceuticals, medical equipment, and healthcare facilities, said the ministry.

Aside from the funding, the Chinese government will continue to invest in the rural health service sector and construction of more quality nursing homes, according to the ministry.

The central government will also encourage private capital to invest in health services and will give equal treatment to not-for-profit private medical institutions and public medical establishments.

The State Council, China's Cabinet, issued a guideline on Monday setting targets increasing the gross value of the country's health service sector to over 8 trillion yuan by 2020.